The introduction of new products is an important method of competition in many markets. Towards understanding its impact on competition and welfare, this paper estimates the effects of Crystal Pepsi being introduced by PepsiCo. Estimating a structural model of the soft drink market, the...

This paper analyzes the interactions between labor and housing (and land) markets in a city. We develop a monocentric city model involving land development and frictional unemployment. Unemployment, the spatial structure of a city, land development, housing demand, prices of housing and land are...

We examine the expectational stability (E--stability) of rational expectations equilibrium in the ``New Keynesian\'\' model where monetary policy is optimally derived and interest rate stabilization is added to the central bank\'s traditional objectives of inflation and output stabilization. We...

A landmark result in the optimal monetary policy design literature is that fundamental-based interest rate rules invariably lead to rational expectations equilibria (REE) that are not stable under adaptive learning. In this paper, we make a novel information assumption that private agents cannot...

We explore the possibility that a housing market boom-bust cycle may arise when public beliefs are driven by news shocks. News, imperfect and noisy by nature, may generate expectations that are overly optimistic or pessimistic. Over-optimism easily leads to excessive accumulation of housing...

The current study examined the impact of attributional styles on subjective well-being, with a primary focus on confirmation of the mediator role of dispositional optimism among a sample of 384 college students. Participants completed a questionnaire packet containing life orientation...

Do international business cycles only represent optimal responses by rational agents to erratic changes in technology, or are they also influenced by factors that are unrelated to fundamentals? This paper addresses this issue by exploring the role of such non-fundamental factors in improving...